Banknifty future this week closed at 24417 with loss. This was first major losing week for this banking index after last week’s small gains. This week banknifty future hit low of 24403 while high was 25104. Total 700+ points weekly range and strong negative closing for the week on strong profit booking.
Banknifty weekly chart, Prices are now below 5 weeks average of 24480 and look like going for correction. On downside 23740 is banknifty 20 weeks average support and below that 22055 is 50 weeks average level. Weekly chart RSI is at 64 and with bearish divergence and came off from overbought condition while MACD is at 856 and with bearish crossover suggesting early corrective signals.
Banknifty future this week hit my given bullish swing target of 25100 and then saw strong supply around those level and hit corrective target of 24500 on downside. Below 24500, banknifty future will remain weak and bearish for short term targets of 23725 and below.
Banknifty option traders below 24500 keep buy on dips view in banknifty 24500 put options of this expiry or banknifty 24000 put options of next expiry with strict stop loss for big gains in next week. We already saw huge rally in both call and put options. Banknifty 25000 put options this week rallied from low of 138 to high of 590 rupees.
Banknifty future from investment view hit 2017 target of 21400 and 24600 and then hit fresh high of 25260 in month of august. Now hovering around 24650 zone before next major move. If sustain below 24650 then expect medium term correction up to 24000 to 23000 level.
In last 7 months, only 2 months were negative while 5 months are with green closing and month of September kicked with positive start and this month’s positive candle showing 900 points range and still positive candle. September low of 24197 will remain most important level from medium term view.